An automobile owner reduced his monthly fuel consumption when the price went up. Price (Rs./Litre): 40, 50, 60, 75 — Monthly consumption (Litres): 60, 48, 40, 32. If the price goes up to Rs. 80 a litre, his expected consumption in litres is expected to be:
A. 30 (Correct answer)
B. 28
C. 26
D. Cannot be determined
Correct Answer
Option A — 30
Detailed Solution & Explanation
The correct answer is 30.
Key Points
The product of Price × Consumption is constant: 40×60 = 50×48 = 60×40 = 75×32 = 2400.
This shows an inverse relationship.
At Rs. 80 per litre: Consumption = 2400 ÷ 80 = 30 litres.
This is an example of an inverse proportion relationship between price and quantity demanded.